THEATRE OF THE MIND

Radio delivers words, music and sound effects that cause the listeners to create images in their minds. These images are strong and personal to each listener

Radio production is cheap because only voice and imagination is required

Expensive production shoots and animation are not needed - only imagination. Produces images not physically executable in other media forms using imagination.

Radio Ranks 4th in Media Spending, 1999

in millions

Television Newspapers Direct mail Radio Yellow pages Magazines

28% 26% 23% 10% 7% 6%

Television Bureau of Advertising

RADIO DOWNPLAYED BY AD AGENCIES

TV costs 10-100 x radio Agency fees based on amount of ad time/space purchased Agencies make much more money buying TV or magazines than radio

Agency creatives want to do TV for $$$ + ego

TV is dominant ad medium since 1970 TV ads get most attention and talk TV spots are focus of national and regional Addy awards Creatives make more $$ working with TV

Ad agencies get hot - get big clients - through TV/ magazines

A presence on TV and in innovative glossy magazine ads gives an agency the most visible place to display creative work.

Radios Selling Points

Flexibility - quick on and copy changes Average person listens 3+ hours daily Reaches 95% of all consumers weekly Reaches 63% of 25-54 consumers within hour of making largest purchase of day 12+ spends 44% of 6AM-6PM media time with radio

 Reaches 82% of adults in their cars Wide array of formats to reach listeners in receptive frame of mind Radio offers high frequency levels, which enhance reach Lowest cost top media (time + production) Extends advertiser investment in TV Mobility is direction of all media (wireless)

Radios Negatives
Background medium - listeners doing something else while listening Requires high levels of frequency for maximum impact Multiple stations must be used to achieve high levels of reach - drives cost up No visual and motion elements found in TV

Selling radio in large markets and small markets is very different

Programming dynamics are much the same in large and small markets, the but the selling functions are dramatically different.

Selling Radio - Large Markets

Like selling TV heavy demand for inventory on top rated stations High % of ratingsoriented agency business. Huge number of competitive stations.

Selling Radio Middle and small markets

Less formal- smaller agencies and direct accounts Less emphasis on ratings - more on relationships and getting advertiser results

Small market Sales Build client rapport Understand client goals and challenges Create marketing plan for client. Be a full service marketing consultant beyond selling your time Keep your client sold

The seven dirty words of radio

I tried it once and it didnt work

Scheduling is overlooked element in radio sales success

Schedules with high spot loads sell more merchandise Reach: How many people are exposed to a message Frequency: How many times the average listener is exposed to the message (3.5) Effective sellers know the frequency needed on their station and get it

Keys to that first sale

Know your clients goals and challenges Create schedules and promotions that solve client problems Use written proposals that achieve client goals Use spec spots

Radios New Era

Group operators now control dominant radio stations in most markets. Technology and common ownership reducing jobs in all areas except sales. Value of stations high. Better sales management tools, promotion Non traditional revenues aiding success Very few super-dominant stations remain

The digital media marketplace

Radios low cost could soon be challenged by cable networks with much higher ratings and Internet and satellite radio advertising. Clustering of stations under one owner has made it possible for salespeople to sell several stations with different demographic targets rather than just one station (under some owners).

The Bottom Line

The new corporate giants have used their power and dominance to raise traditionally cheap radio rates, increasing revenues The brightest and most aggressive salespeople will find more responsibility, income, and LSM/GSM/GM jobs.